Delhi-based Prime Database on Thursday said that converting Securities and Exchange Board of India (Sebi) into a government department is not a welcome sign after the market regulator shot a letter to Prime Minister's Office (PMO) to reconsider the budget proposal on reserve fund transfer to the government.
In an interview to CNBC-TV18's Latha Venkatesh, Prithvi Haldea, founder and chairman, said, "I am quite appalled by the measure which has been announced. I think we should actually be moving more and more towards the autonomy of a regulator. Sebi is independent and they need money for technology for development and for other kinds of expenditures. Sebi already has a very strong board, including a representative of the ministry of finance and the money is spent very prudently. In any case, CAG and Parliament have an oversight."
Haldea said, "Sebi has been enacted through an act. It has its own sources of revenue including levying fees on transactions or on market intermediaries. If the government is trying to source money from every single place where it thinks that money is lying ideal or is in the reserve and can be used for government expenditure, I think that is not something that we should really support."
"I am watching Sebi for so many years and it has not displayed any kind of extravagance or any kind of wrongdoing in terms of expenditures," he added